Natixis

Europe’s high grade bond investors will have a chance to buy debt from one of the sectors most battered by the coronavirus pandemic next week, after French real estate investment trust Covivio Hotels mandated for a trade on Friday.

Rating: Aa3/—/A-

LBBW priced its first euro green non-preferred bond in two years at one of the tightest spreads of the year so far for the format, while still offering investors scope for secondary performance.

The Republic of Benin launched its debut SDG (Sustainable Development Goals) bond in its second international offering of the year, following a two year hiatus. Market participants say although deals like Benin’s are getting over the line, concerns are brewing over the sustainability of high yield sovereigns tapping investors so freely.

LBBW slipped through one of the final windows ahead of the summer break to price its first euro green non-preferred bond in two years at spread deemed to be through its conventional curve.

The Republic of Benin plans to be the first sub-Saharan African sovereign to tap the international bond market twice in 2021. The sovereign this week intends to sell a bond with a sustainability feature, making it one of the first in the region.

LBBW cut a lone figure in the market on Monday as it announced plans to sell its first green labelled non-preferred bond in euros for over two years.

France is preparing a 30 year OAT syndication, capitalising on a market that seems eager for paper that has snapped up an EFSF tap with an order book more than eight times subscribed.

UniCredit plans to make labelled financing a regular part of its funding across the group, following the launch of its debut labelled bond this week. Its first deal proved popular as it stacked up more than €3.25bn of demand.

A trio of rare names made use of the attractive issuance conditions and strong appetite for credit to launch debut deals this week. Two of the borrowers — Illimity and Groupama — chose to print subordinated deals into this stable market, while Erste Bank Croatia sold its first public deal outside its home market.

Voltalia, a French renewable energy company, has signed a €170m sustainability-linked loan, with the deal adding to the growing trend of second party opinion providers becoming a central part of ESG finance.

The Belgian region of Wallonia was the only public sector borrower to the follow Tuesday’s jumbo dual tranche by the European Union in the primary market on Wednesday as it raised €1bn with a new long 10 year conventional bond.